The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account):1st Quarter 2nd Quarter 3rd Quarter 4th QuarterBudgeted unit sales ............................ 11,000 12,000 14,000 13,000The selling price of the company’s product is $18.00 per unit. Management expects to collect 65% of salesin the quarter in which the sales are made, 30% in the following quarter, and 5% of sales are expected to beuncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in thefi rst quarter, is $70,200.The company expects to start the first quarter with 1,650 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter’s budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,850 units.Required:1. Prepare the company’s sales budget and schedule of expected cash collections.2. Prepare the company’s production budget for the upcoming fiscal year.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account):
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Budgeted unit sales ............................ 11,000 12,000 14,000 13,000
The selling price of the company’s product is $18.00 per unit. Management expects to collect 65% of sales
in the quarter in which the sales are made, 30% in the following quarter, and 5% of sales are expected to be
uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the
fi rst quarter, is $70,200.
The company expects to start the first quarter with 1,650 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter’s budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,850 units.
Required:
1. Prepare the company’s sales budget and schedule of expected cash collections.
2. Prepare the company’s production budget for the upcoming fiscal year.

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